Tumor growth, progression, and response to the hypoxic tumor microenvironment involve the action of hypoxia-inducible transcription factors, HIF1 and HIF2. HIF is a heterodimeric transcription factor containing an inducible HIFa subunit and a constitutively expressed HIFb subunit. The signaling pathways operational in macrophages regulating hypoxia-induced HIFa stabilization remain the subject of intense investigation. Here, it was discovered that the PTEN/PI3K/AKT signaling axis controls hypoxia-induced HIF1a (HIF1A) and HIF2a (EPAS1) stability in macrophages. Using genetic mouse models and pan-PI3K as well as isoform-specific inhibitors, inhibition of the PI3K/AKT pathway blocked the accumulation of HIFa protein and its primary transcriptional target VEGF in response to hypoxia. Moreover, blocking the PI3K/AKT signaling axis promoted the hypoxic degradation of HIFa via the 26S proteasome. Mechanistically, a macrophage-dominant PI3K isoform (p110g) directed tumor growth, angiogenesis, metastasis, and the HIFa/VEGF axis. Moreover, a pan-PI3K inhibitor (SF1126) blocked tumor-induced angiogenesis and inhibited VEGF and other proangiogenic factors secreted by macrophages. These data define a novel molecular mechanism by which PTEN/PI3K/AKT regulates the proteasome-dependent stability of HIFa under hypoxic conditions, a signaling pathway in macrophages that controls tumor-induced angiogenesis and metastasis.